Reliance Infrastructure has secured a ₹157.64 crore arbitration award in its long-running dispute with the Mumbai Metropolitan Region Development Authority (MMRDA) over subordinated debt related to Mumbai Metro One Pvt Ltd (MMOPL), the operator of the Versova-Ghatkopar Metro Line 1.
In a regulatory filing, the company said a three-member arbitral tribunal unanimously awarded ₹157.64 crore towards the cost of subordinated debt, along with applicable interest. Reliance Infrastructure holds a 74% stake in MMOPL, while MMRDA owns the remaining 26%.
The dispute dates back more than a decade and stems from a government loan extended for the metro project. Reliance Infrastructure claimed delays attributable to MMRDA increased the project’s cost from ₹2,356 crore to ₹4,321 crore. MMRDA contested the revised cost estimate, leading the matter to arbitration.
The award comes weeks after MMOPL secured another financial relief, with over ₹1,100 crore of its debt set to be reduced and insolvency proceedings before the National Company Law Tribunal (NCLT) being withdrawn.
The latest arbitration award is expected to improve MMOPL’s financial position by easing its debt burden and strengthening the finances of the operator of Mumbai’s 11.4-km Versova-Ghatkopar Metro corridor.
Source: Hindustan Times
